Lightning Network Capacity Hits Record 5,606 Bitcoin

The Lightning Network's capacity has reached a new peak, driven by increased Bitcoin deposits from major exchanges such as Binance and OKX. The network's public capacity rose to approximately 5,606 BTC, with some sources noting a brief high of 5,637 BTC. This expansion aims to enhance transaction speed and reduce fees for users.

Network Dynamics

Despite the increased capacity, the number of public nodes and channels remains stable at around 14,940 nodes and 48,678 channels.
Exchanges are concentrating liquidity in large custodial channels, allowing significant transfers without many new public routes.
On-chain metrics show user benefits through transaction count and fee savings.
A notable exchange reports routing about 15% of its Bitcoin transactions via Lightning, indicating operational shifts.

New Developments and Funding

Tether led an $8 million funding round for a startup focused on Lightning-based payments, highlighting interest in stablecoin transactions.
Protocol upgrades, including Taproot asset handling, aim to support diverse payment types and improve reliability.
Lightning is increasingly used for remittances, merchant payments, and stablecoin transfers.

Overall, the combination of increased liquidity, protocol enhancements, and growing usage suggests that Lightning could become a more practical option for daily Bitcoin transactions. However, concerns about centralization risks due to custodial channels persist.